02033cas a2200253 a 4500 AALejournalIMF016441 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513560540 1018-5941 BD-DhAAL BD-DhAAL Goncalves, Carlos. Taylor Visits Africa / Carlos Goncalves. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (19 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Many low-income countries do not use interest rates as their main monetary policy instrument. In East Africa, for instance, targeting money aggregates has been pretty much the rule rather than the exception. Nevertheless, these targets are seldom met and often readjusted according to the economic environment. This opens up the possibility that central banks are de facto pursuing a strategy more akin to a Taylor Rule. Estimations of small-scale models for Kenya, Uganda and Tanzania suggest that these self-styled "monetary targeters" are respecting the Taylor Principle, that is are on average increasing nominal interest rates more than proportionally to inflation. Nevertheless, steep deviations from the Taylor Rule have taken place in Kenya and Tanzania. In Uganda, these errors are much smaller, in fact similar in size to Taylor Rule deviations found for Brazil. More surprisingly, they are smaller than South Africa's, the continent's sole long-term inflation targeter. Mode of access: Internet Tanzania, United Republic of imf IMF Working Papers; Working Paper ; No. 2015/258 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/258/001.2015.issue-258-en.xml IMF e-Library